AUTONATION

CASE STUDY

June 2014

HICX Solutions Ltd.

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Context

AutoNation, is America’s largest automotive retailer. A constituent of the S&P 500 Index, it owns and operates 270 new vehicle franchises in 15 states, has 13 regional ERP systems plus a PeopleSoft system for head office, resulting in 14 accounts payable systems.

Knowing their ERP landscape would remain complex, AutoNation needed a solution to consolidate and govern the vendor data from their 14 different systems.

“We have a center-led procurement model. Our corporate procurement team currently manages about 40- plus categories of spend. Otherwise, the stores or business units can make the decisions locally about the suppliers they wish to use. We needed a system that could support the corporate oversight while still allowing for the local flexibility.”

Challenges

Existing system landscape.

AutoNation had 14 systems deployed on a more or less regional basis to handle the volumes of data they were dealing with. This meant that each time a supplier relationship was extended to a new region, the data had to be duplicated into the local system. This led to huge data redundancies and inefficient processes in trying to achieve a consolidated centralized view of the supply base.

Data quality.

According to Jacy Bassett, manager, supplier resource department, AutoNation. “It’s not until you’re in the midst of it that you realize the importance of not underestimating the data,” For AutoNation solving their data quality issues was unarguably the most critical success factor in the project.

Data consolidation.

With so many ERP’s, AutoNation needed to devise an overall strategy to identify unique suppliers. “Having a holistic view of the supplier and the corresponding spend was difficult,” “This lack of insight has prevented us from being fully able to leverage our size and consolidate spend among our store and business units.”- Jacy Bassett, manager, supplier resource department, AutoNation.

The Solution

Single system of truth

By implementing HICX platform with integration and master data governance, AutoNation achieved “a single source of truth, one point of data entry that feeds to all ERP systems through an automated process that ensures consistency in the data.

Going further, HICX enabled a seamless management of supplier record mismatches between the different types of ERP systems to ensure ongoing consolidation and reporting activities were possible.

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Supplier portal

The HICX supplier portal has given AutoNation suppliers transparency into their invoice status and payment details. According to Jacy Bassett “It was a large part of our business case and ROI for the suppliers to depend less on our support desk and more on self-service in the portal” Denise Foley, CPO at AutoNation, said, “I think that the self-help portal is a very strong selling feature.”

Deployment approach

AutoNation on-boarded the suppliers into the fold gradually, by starting with the onboarding process for new suppliers gradually bringing existing legacy suppliers into the self-service model.

“Data doesn’t generally excite people – it’s very foundational. But the opportunities that come from the consolidation and enhancement of data can have a healthy impact on the bottom line” - Denise Foley CPO at AutoNation

Benefits

AutoNation have realized substantial benefits in terms of automating of the workflows and standardization of the processes.

Through comprehensive reporting, AutoNation scaled the ability to tap into real-time information, equipping it with the information needed to manage and negotiate better with suppliers; for example getting access to insurance documents that vendors can upload into the portal.

The platform and portal have helped drive effective governance and better control with improved visibility at AutoNation.

"The support desk was handling some 4,000 supplier inquiries a month – mostly from suppliers struggling to reconcile payments received from AutoNation’s 14 accounts payable systems with multiple outstanding invoices – so moving suppliers on to a self-service portal has brought considerable savings and benefits for everyone.’’

Find out your potential business benefits by speaking to HICX Solutions today.

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ABOUT HICX

What We Do

Our platform lets you digitize your old procurement, finance, compliance and supply chain processes.

This creates real value drivers for your business operations derived from improved data quality, better collaboration, centralization, and automation.

Why We Do It

Because no one else is!

While everyone is trying to fit a square peg in a round whole (by adapting transactional systems such as ERP and P2P systems, which are inherently created to be rigid), HICX opted to create a unifying platform that could work across system silos and is super flexible to change.

Our master data management core connects real business processes with data management in such a way that enables businesses to centralize, streamline, and automate processes faster than ever before creating real value.

Our Story

HICX is the brainchild of two computer scientists, who came together to create something different in the world of Enterprise software. Founded in 2004 out of London, UK, the company bootstrapped R&D in the early years through its consulting practice which allowed them to hone their craft by understanding the use and limitations of today’s Enterprise software for large complex organizations.

Coming to market in 2012 with its first off the shelf offering, they gained rapid traction in Europe and North America, with Global 2000 companies who saw their platform for Supplier Data Management as transformative for Procurement, Finance and Shared Services.

Unlike most companies in the space which focused on hard coding a single process, HICX focused on creating a platform – why? In today’s fast paced global economy your requirements today are not going to be your requirements tomorrow, if you cannot quickly adapt software to fit your needs it will quickly become a legacy platform.

HICX has grown and today operates out of the UK, US and UAE and manages millions of suppliers through its platform across 90+ countries globally, but our focus hasn’t wavered. We still make business software that’s efficient, simple to use and built for change.

We embody the same values we’ve had from the beginning and put engineering and innovation for our customers first.